Power cooperatives nix Mt. Apo plant rate hike

Members of the Association of Mindanao Rural Electric Cooperatives (AMRECO) are opposing the P5.37 per kilowatt hour (kwH) provisional power rate approved by the Energy Regulatory Commission (ERC) for the Mt. Apo Geothermal Plant in Kidapawan City.
AMRECO president Sergio Dagooc said the transfer of ownership and management of the formerly state-owned power plant to FDC Misamis has given additional burden to contracting electric cooperatives (EC) because of the rate increase.
As reflected in the March power bill of the Bukidnon Second Electric Cooperative (BUSECO), the rate increased from P3 to P5.37/kwH.
Prior to February 2015, the generation of Mt Apo 1 and 2 geothermal plants was sold to consumers at a bundled rate of P3/kwH.
“The additional P2.37 was said to be the administrative charge imposed by the new owner of Mt. Apo,” Dagooc said during a press conference at the Gran Men Seng Hotel on Tuesday.
He said the additional administrative charge of Mt. Apo has no legal basis since only charges on generation, transmission, system loss, and distribution metering are allowed.
“This additional charge prompted electric cooperatives to increase their charges to their consumers,” he added.
In any electric bill, consumers have to pay different charges such as generation, transmission, and system loss, but for customers of distribution companies and electric cooperative contracting to Mt. Apo, they have to pay the additional administrative charge.
Dagooc said it is not the choice of ECs to pass on the charges to consumers because they are just “collectors.”
“The problem with this is that consumers blame cooperatives for high rates but it’s the additional charges passed by generation utilities that makes power rates higher,” he said.
Distribution utilities and electric cooperatives can only charge consumers through the distribution metering charge which do not increase immediately compared to generation charge.
Aside from higher power rate, Dagooc also said there is also a problem with the lack of transparency of the bidding process for the Mt. Apo Geothermal Plant.
“We didn’t know that Mt Apo was already for bidding last year. It only came to us that it has a new administration,” he added.
He also said the privatization of state-owned power plants only led to higher power rate because investors are trying to cover their expenses.
Under the EPIRA law, all state-owned power generations should be privatized except the Agus-Pulangi Hydro Power Complexes in Lanao del Norte and Bukidnon, respectively.
Meanwhile, Mindanao Development Authority director for investment promotions and public relations Romeo Montenegro said the power rate passed on by FDC Misamis can still change since it is still being assessed by the ERC. CHENEEN R. CAPON